NITTO DENKO NAMES DHL AS ITS LEAD LOGISTICS PROVIDER
Press Release: Tokyo 04/26/2018
Partnership will see DHL take over Nitto Denko’s logistics function in Japan
DHL Supply Chain, the global market leader for contract logistics solutions, and Nitto Denko Corporation (Nitto), Japan’s leading diversified materials manufacturer for a wide range of business fields including electronics, automobiles and life science, have entered into a Lead Logistics Provider (LLP) agreement in Japan. The five-year agreement will see DHL take on the logistics function for Nitto that was previously served by Nitto Logi-com Corporation, its logistics subsidiary.
Gavin Murdoch, President and Representative Director of DHL Supply Chain Japan, said: “We are thrilled to be the LLP partner of Nitto, a global leader in their field. They recognized our expertise in providing LLP solutions to drive standardization and optimize cost – particularly in the Japanese context, as they saw the success we have had with Konica Minolta in a very similar agreement. We look forward to sharing the knowledge we have gleaned from operating around the world, and delivering new value to Nitto.”
As the LLP provider for Nitto, DHL will be providing inbound, storage, outbound, value added services, and transport management services at the logistics sites inside their eight business offices in Japan – in Miyagi, Saitama, Aichi, Fukui, Shiga, Mie, Hiroshima and Ehime Prefectures. DHL will also manage the operations of the just-in-time warehouses which serve Nitto’s customers with a focus on automotive industry.
Through the LLP partnership, Nitto will benefit from reduced costs through optimized warehouse operations, enhanced transportation, restructured domestic distribution networks, standardized work processes, and the establishment more effective management methods.
The LLP service provided by DHL Supply Chain introduces lean logistics processes to customers’ networks and delivers value-added services such as the end-to-end planning and design of supply chains. Other services include Key Performance Indicator (KPI)-based quality management, cost management visualization, and work process standardization, all of which help to manage change across entire supply chains, so customers can more efficiently meet with evolving business demands.
DHL Supply Chain has a proven track record in Japan of leveraging knowledge and expertise gained through its international operations to meet customer requirements locally, which has allowed it to expand and strengthen its business in the country. The company offers third party logistics (3PL) solutions, allowing customers to fully outsource their logistics management and operations. Solutions include warehouse management, domestic transport, service parts logistics, packaging design and recycling, all delivered through state-of-the-art IT solutions and project management techniques.